Hyundai's Proposal to the Government to Help the Automotive Industry

KatadataOTO – The automotive industry still has to face a number of challenges this year. However, retail sales (dealer to consumer) slowly rose in February 2025 to 69,872 units from the previous 64,029 units in January.

However, when compared to last year's achievement, in the February 2024 period, retail sales of four-wheeled vehicles were still higher at 70,291 units.

For this reason, manufacturers together with the government need to find ways to rekindle consumer interest in buying cars.

PT HMID (Hyundai Motors Indonesia) as one of the manufacturers said that each brand certainly has its own strategy in facing the sluggish automotive market.

Photo : Special

“Yes, maybe (incentives) could attract people's purchasing power to buy more vehicles,” said Fransiscus Soerjopranoto, Chief Operating Officer of PT HMID in Jakarta recently.

However, according to Frans, there are other things the government can do. For example, supporting the export of four-wheeled vehicles.

The proposal, he said, has been submitted to Gaikindo (Association of Indonesian Automotive Industries).

“We are directing Gaikindo more towards the fact that we have an opportunity to utilize exports, just like Thailand,” said Frans.

Hyundai itself continues to prepare to be able to export new products in the future. Considering that throughout 2025, Hyundai will bring in 15 new models.

The majority will have CKD (Completely Knocked Down) status for domestic market needs and also for export.

“We have quite complete facilities, we just need to formulate what products we will use in Indonesia. I can't say what the segment is yet,” said Frans.

So far, Frans said that Hyundai has exported vehicles to more than 50 countries. Some of the models sent abroad are the Creta and Stargazer.

Hyundai vehicles with CKD status are assembled at the facility owned by PT HMMI (Hyundai Motor Manufacturing Indonesia).

Photo : Special

Although he could not provide the exact number of units exported, it is known that as of 2023 the figure had reached 150 thousand units.

For your information, the annual production capacity of the Hyundai factory in Cikarang is now 150,000 units. However, this figure can still be maximized up to 250,000 units annually.

Models assembled there include the Ioniq 5, Santa Fe and Santa Fe Hybrid, Kona EV, Stargazer, New Creta, and the New Creta N Line.